Leveraged ETFs
Coverage of Leveraged ETFs in the Nexus archive.
- Korean Stocks Are on Fire Again, With a Bit Less Excess This Time
Korean stocks are reported to be highly active once again. In related news, Seoul has curbed the use of leveraged ETFs.
- Rotation From Leveraged ETFs Fuel 30% Jump in Korea Small Caps
Small-cap stocks in South Korea are regaining investor interest after previously lagging larger peers. This shift occurred as restrictions on leveraged exchanged-traded funds tracking heavyweight chipmakers redirected investment money toward names listed on Kosdaq.
- Banks Offload Risk from Leveraged ETFs with ‘Crash Puts’
Leveraged ETFs, which aim to double or triple daily returns of individual stocks, are considered highly risky. This has led to increased activity in the derivatives market involving 'crash puts' (also known as cliquets or stability notes) as banks and institutional investors offload risk.
- Crushed by Kospi rout, angry Koreans rip Lee and vow not to buy
South Korea's Kospi market suffered a 22% monthly loss in July, leading retail investors to blame government policies and leveraged ETFs for amplified volatility. Retail traders sold record shares despite a rebound, with many vowing to avoid the market, citing frustration over risks and perceived manipulation.
- Banks Offload Risk from Leveraged ETFs With Exotic ‘Crash Puts’
Banks are using exotic financial instruments called 'crash puts' to transfer risk associated with leveraged ETFs, which are designed to double or triple daily returns of individual stocks but are known for their high risk to investors.
- Leveraged ETFs tied to SK Hynix are getting hammered as chip wreck deepens
Leveraged ETFs linked to SK Hynix are experiencing significant losses as the chip market downturn worsens. Volatility in the AI trade has negatively impacted bullish investments in stocks through leveraged ETFs this week.
- Leveraged ETFs are booming in 2026. But they’re also being shut down at a record pace.
Leveraged ETFs are experiencing a boom in 2026 but are also being closed at a record pace. These funds, designed for magnified bullish and bearish bets on stock and financial market swings, are shutting down rapidly.
- Kioxia Faces More Volatility as Leveraged ETFs Hit Japan Stocks
Kioxia Holdings Corp. is experiencing increased price volatility due to the upcoming listing of leveraged exchange-traded funds (ETFs) tracking its shares in the US. These leveraged ETFs are expected to amplify the stock's price swings.
- SK Hynix’s US Trading Debut Unleashes Wave of New Leveraged ETFs
SK Hynix's US trading debut has triggered the launch of new leveraged ETFs, reflecting investor interest in the company's market entry.
- Risky leveraged ETFs are booming in 2026. Some worry they could be making the stock market more volatile.
Leveraged ETFs are experiencing a surge in 2026, with concerns rising about their potential to amplify stock market volatility. Traders using these products often view significant stock price swings as an intentional feature rather than an unintended consequence.
- Samsung, SK Hynix and Leveraged ETFs Drive 70% of Korea Trading
Samsung and SK Hynix, along with leveraged ETFs, account for 70% of Korea's trading activity. The report highlights the significant influence of these entities on the country's market dynamics.
- Investors Are Using Leveraged ETFs to Turbocharge AI Bets
Investors are using leveraged ETFs to increase their AI-related investments. South Korean companies like Samsung and SK Hynix will invest at least 1,350 trillion won ($880 billion) in chips and data centers to maintain their AI industry leadership.
- How to Invest in SpaceX Through Leveraged and Inverse ETFs
SpaceX's June IPO raised $75 billion, making it the largest U.S. IPO ever, and has led to the creation of leveraged and inverse ETFs for investors seeking amplified exposure or downside protection. These ETFs use derivatives and leverage to target 2x or 3x daily returns, but carry elevated risks and costs.
- SpaceX stock’s wild price swings since its IPO show how risky leveraged ETFs can be
SpaceX stock experienced significant price swings after its IPO, illustrating the risks of using leveraged ETFs to bet on single stocks. The rapid decline in excitement highlights the volatility and potential dangers of such investment strategies.
- Korea Mulls Steps to Rein In Leveraged Samsung, SK Hynix ETFs
Korea is considering measures to regulate leveraged ETFs tied to Samsung and SK Hynix. The article mentions SK Hynix Inc. but provides no further details.
- Upcoming SpaceX IPO spawns leveraged ETFs for bullish and bearish bets on its stock
The upcoming SpaceX IPO has prompted the creation of leveraged ETFs allowing traders to make bullish or bearish bets on the company's stock. These ETFs aim to provide high-risk investment opportunities tied to SpaceX's market performance post-IPO.
- Why exploding retail euphoria and leveraged ETFs have scared one stock-market bull into turning cautious
A Barclays strategist has shifted to a cautious stance on U.S. stocks due to concerns over exploding retail euphoria and leveraged ETFs. The strategist outlines specific conditions required to regain a bullish outlook.
- Goldman Desk Sees Korea Leveraged ETFs as Volatility Accelerator
Goldman Sachs analysts warn that leveraged ETFs in South Korea may exacerbate market volatility. The firm's desk highlights concerns about amplified price swings due to these financial instruments.